It’s a new year and just hired my first employee. Been in business 6 months. Looking at some of my storefront stuff and my prices are to low. I’m charging a $2 a window now (in and out). Couple of the jobs are not even that. They were some of my first jobs and I just wanted to get them. My question is what do you guys say when you talk to your customer about raising prices? Do you talk to them one on one or to you mail them a letter? What if the managers not even there and the person at the front desk can’t make the decision?
are you hiring full-time are part-time???
To me the question really comes down to do I have enough work for another person…if your answer is No and you feel like raising some prices to make up for that, I think you need not to do that.
I felt that way when I was about to clean full-time…“I’ll raise my prices”…and I did raise my prices on some, thanks to Kevin and the way he explained it.
But really the problem is more work, which comes down to you picking up more accounts or larger accounts for your employee to do…If you think raising all you rates will solve your work problem, you’ll find your self in this encomy some accounts less.
just continue to hussle until your work load is enough for another, and then another and so on.
When we raise our commercial account prices we mail a letter. It’s a very straightforward, complimentary letter. We tell them how much we appreciate their business and let them know their prices will be increased.
To quote one line, “This new price reflects increases in operating costs for our business to ensure that you continue to receive the highest quality of service available.”
So, we just let them know that they mean a lot to us but in order to service their location as best we can we need to make $XX.XX. Most people understand, they are in business and know that the cost of doing business, regardless of what business it is, is always on the rise. We do lose some accounts to the increases but overall have a good success rate with this method.
Had good success with it today. Told 4 of my customers and all of them said ok. One of this is a job I way under priced. Told them it will double she said sounds good just let me call someone and I’ll call you in the next couple of days. I’m going to do it to most of them not all.
good, I hope you have success in getting more money.
That account you said the price was doubling, how much was the original price?
I have bid sometimes below my standards for a greater cause. I’ll see major opportunity in a new plaza and pick up a few accounts…I’m sure people will disagree here about that, but you have to understand my market.
soon you’ve gotten squeegee Bob and out because you snagged all those accounts…now it’s time to raise the prices of the lower bid accounts, and now you’re doing just about everyone in the plaza 
The account was $20 for in and out. Most of the window were about 5x5. I was at the point if they say no I would be fine with it. Take around 45 min. to do and there is no other stores in the area. I thought about that. Have lower prices for about 6 months then raise the price. I think i might do the 10% every 6 months.
to each his own method, just keep in mind your commercial market. My results of that method not be the case in California for example, or maybe it works better over there…
Trial and error 
after an account gets used to your pretty mug and really likes you, more often a price increase is over seen.
Just be careful with that. Your looking at 20% per year. That’s a lot. I did an estimate yesterday for a lady who is way way south of me. She is out of my service area but just kept on calling. She saw a write up in a mag Chris and I were in. She insisted I give her an estimate. Large beach home down by Atlantic City. She told me it’s not the price she was concerned about, she has a problem with her current cleaner. He kept raising her prices. She said over the last two years the job went from $1000 to now $1300. Funny thing, my price was a little lower then $1300 but it will stay that way for her for about 5 years. If she remains a customer for that long. She just wanted to make sure that the price will not change every 6 months. So just be carefule cause whom ever was in Atlantic city just lost a good gig cause of raising raising raising. Customers are not poker chips.
20% increase a year is a lot…
I bought my company back in May 2008, and I haven’t raised my prices yet, but don’t have in mind to raise them soon, somewhere during 09. But I still have payments to do for the company to be 100% mine, and after that I won’t be that “desperate” for money.
I understand and agree with that mentality of raising prices, but let’s all understand that every individual has it’s own necessities and needs to work to meet those needs.
You “bought” your company???
Yes Matt.
A friend of mine started the company 6 years ago and decided to leave the country for family reasons, and I was looking for a change, being working for someone else, with people in charge and a lot of pressure for not so good money.
So we talk and I gave him a down payment a a certain amount of monthly payments, so it pays for itself.
I bought myself a job and I working on it to turn it into a business.
I’m thinking you’re well on your way, Carlos.
good way to word it…
Not the best one I might add 
I find it easier to bid high on a job,and let them know you will not be raising prices for 2or 3 years.
Yeah I had people freaking out when I was charging a $1 a window. I’m going to focus more on residential now.
